NY Top Court Eyes Coverage Denials Tied To Disgorgement

Law360, New York (April 29, 2013, 7:08 PM EDT) -- New York's top court will hear arguments Wednesday on whether JPMorgan Securities Inc. should get a trial on its claims that insurers should fund most of a $250 million settlement the bank reached with securities regulators in a case that will test whether the term disgorgement, which often pops up in such agreements, categorically precludes coverage.

The case stems from a 2006 deal reached by the Bear Stearns Cos., now JPMorgan, to pay $250 million — including disgorgement of $160 million — to end allegations that...